East Africa Logistics Market Size to Surpass USD 37.8 Billion by 2034, at a CAGR of 4.67%

East Africa Logistics Market Overview

Market Size in 2025: USD 25.1 Billion

Market Size in 2034: USD 37.8 Billion

Market Growth Rate 2026-2034: 4.67%

According to IMARC Group's latest research publication, "East Africa Logistics Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The East Africa logistics market size reached USD 25.1 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 37.8 Billion by 2034, exhibiting a growth rate (CAGR) of 4.67% during 2026-2034.

How AI is Reshaping the Future of East Africa Logistics Market

• Optimizing Fleet Management and Routes: AI-powered platforms like Leta are transforming logistics across Kenya, Tanzania, Uganda, and Rwanda. Leta handles over 10,000 deliveries daily and has facilitated 4.5 million deliveries by using smart algorithms that cut fuel consumption and reduce delivery times. Companies like Alliad Kenya use AI monitoring systems providing real-time data on driver behavior and vehicle health, improving route optimization by 25% while reducing operational risks.
• Streamlining Cross-Border Trade: Startups like Swiftway Shippers in Ghana processed over USD 44,000 in shipment value between May and September 2025 using automated platforms that integrate cargo pickup, customs clearance, and real-time tracking. AI is simplifying traditionally manual cross-border documentation, reducing errors and speeding up shipment handling across East African corridors.
• Attracting Strategic Investment: Leta secured USD 5 million in seed funding from Speedinvest and Google's Africa Investment Fund in March 2025, proving investor confidence in AI-driven logistics. The company reports fivefold revenue growth and is expanding across West Africa, demonstrating how AI solutions can scale rapidly across the continent.
• Reducing Port Dwell Times: Tanzania's median port dwell time of 5.4 days represents a major bottleneck costing businesses significantly. AI-enabled systems from companies like CTRLX.AFRICA are addressing these challenges through predictive maintenance and automated fleet coordination, helping cut cargo delays and reduce losses from damaged goods.
• Supporting Regional Integration: With over 60% of freight operators in Nairobi and Mombasa now using mobile-based cargo tracking platforms, AI is enabling better coordination across East Africa's transport networks. Digital freight matching apps have reduced empty return trips by 25%, making logistics more efficient and cost-effective for regional trade.

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East Africa Logistics Market Trends & Drivers:

East Africa shipping scene is getting a boost from new roads and rails changing delivery routes. Big train plans are upgrading links - Tanzania’s $2.3B line from Tabora to Kigoma ties Dar es Salaam harbor to Lake Victoria, stretching into Rwanda, Burundi, Congo, plus Uganda. Backed by the African Development Bank, $696M in loan support helps pull in $3.9B for a modern rail path through Tanzania, Burundi, and DR Congo. Mombasa port in Kenya now hooks up with updated rail lines going toward Uganda and beyond, whereas the northern route serving Burundi, DRC, Rwanda, South Sudan, and Uganda may slash freight prices by three-quarters for nations without sea access. By 2025, EAC countries greenlit a shared cargo center inside Naivasha’s economic zone aiming to lower trading expenses even more.

E-commerce growing fast in East Africa, reshaping how goods move. Retail deliveries might hit $1.28 billion by 2025, while overall online sales could climb to $4.80 billion this year. In Kenya, digital shopping hits about $2.1 billion, driven by mobile payments such as M-Pesa that simplify buying stuff. Most people shop on phones - over 60% do it that way - with phone users likely hitting 623 million by 2025. Firms hustle to keep up with the need for speedier shipping - the quickest options like same-day drop-offs are booming since buyers want stuff now. Maersk’s pouring cash into storage hubs and smarter transport systems so stores can handle rising loads. At the same time, homegrown tech ventures are building delivery routes fine-tuned for African cities.

The African trade deal is opening big chances for shipping companies. Because of AfCFTA, there's now one market with 1.4 billion customers and $3.4 trillion in total economic output, while taxes dropped on 90% of items moving across African nations. Freight traffic within Africa might jump by 28% by 2030, which means more than 60,000 km of key roads need upgrades. So far, eleven countries are already trading using these new rules - Kenya, Tanzania, Rwanda, and Uganda among them in East Africa. This shift hits transportation hard - it’s seen as a top area alongside three others, offering around $150 billion in potential funding. A jump in foreign investment - up to 159% - might happen when nations sync their online trade rules. Firms such as DP World, DHL, or Maersk are boosting their presence across Africa to ride the wave from AfCFTA’s expansion, putting money into harbors, storage hubs, along with full-chain delivery networks.

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East Africa Logistics Industry Segmentation:

The report has segmented the market into the following categories:

Model Type Insights:

• 2 PL
• 3 PL
• 4 PL

Transportation Mode Insights:

• Roadways
• Seaways
• Railways
• Airways

End Use Insights:

• Manufacturing
• Consumer Goods
• Retail
• Food and Beverages
• IT Hardware
• Healthcare
• Chemicals
• Construction
• Automotive
• Telecom
• Oil and Gas
• Others

Country Insights:

• Ethiopia
• Kenya
• Tanzania
• Uganda
• Sudan
• Rwanda
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in East Africa Logistics Market

• March 2025: Kenyan logistics startup Leta secured USD 5 million in seed funding led by Speedinvest, with participation from Google's Africa Investment Fund and Equator VC. The company, which has facilitated over 4.5 million deliveries and manages 7,400 vehicles, is expanding its AI-powered logistics platform across West Africa while partnering with major brands like KFC and East African Breweries Limited.
• April 2025: The African Development Bank Board of Directors approved a partial credit guarantee of USD 696 million to release USD 3.9 billion for the Central Corridor Standard Gauge Railway project, which will connect Tanzania, Burundi, and the Democratic Republic of Congo, creating new mining and agricultural corridors across East and Central Africa.
• June 2025: Maersk announced enhanced logistics services for East Africa's retail sector, highlighting the region's e-commerce market reaching USD 4.80 billion with retail delivery hitting USD 1.28 billion. The company is investing in smart warehousing solutions and integrated rail-ocean services along the Mombasa-Nairobi corridor to meet rising demand from urbanization and digital adoption.

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